Why is the Banking Proficiency Test (Taxation) Called 'Hell'? Its Difficulty and a Strategic Roadmap for Breakthrough

[A word from Yuki-kun @ Amateur Investor & Qualification Collector]

Hi there! I'm Yuki-kun, and I recently started on X (formerly Twitter). I usually invest steadily while aggressively pursuing certifications for my job. This time, I'm going to talk about the "Taxation" proficiency test, which is feared among bank employees as "hell." It was so difficult that I felt like my eyes were rolling back in my head, but I've compiled a strategy to conquer it, so take a look!

[Exam Overview, Difficulty, and Appeal]

The Banking Proficiency Test for Taxation is an exam that tests knowledge of tax systems, focusing on income tax and corporate tax, as well as inheritance, gift, and transfer taxes. It is directly linked to practical work and is essential knowledge for consulting with clients and proposing asset management plans. It's not just about rote memorization; the calculation problems are quite tricky.

Exam Date: Late October every year (once a year)
Pass Rate: Generally around 30% to 35% (varies due to difficulty adjustments)
Difficulty: ★★★★★★★★★☆
Popularity: ★★★★★★★★★☆
Income Potential: ★★★★★★★☆☆☆
Future Prospects: ★★★★★★★★☆☆

It is essential to solidify your foundation in areas such as financial statements, income deductions, inclusion of necessary expenses, fixed assets, securities, interest income, dividend income, real estate income, business income, employment income, retirement income, forestry income, occasional income, miscellaneous income, profit and loss aggregation, carry-forward deductions, blue return, white return, depreciation, and public taxes and dues.

[Why it is called 'Hell']

Why is this qualification called hell? In a word, it's because you get swallowed by the "abyss of practice and theory." First, the four pillars of Income Tax Law, Corporate Tax Law, Inheritance Tax Law, and Gift Tax Law are too solid. You may also be asked about peripheral knowledge such as inhabitant tax, business tax, consumption tax, stamp duty, registration and license tax, customs duty, tobacco tax, liquor tax, gasoline tax, land value tax, corporate inhabitant tax, and corporate business tax.

The entrance to hell is the sheer number of "special exceptions." Just memorizing the application requirements for reduced tax rates, tax credits, tax-free allowances, and special deductions under the Act on Special Measures Concerning Taxation will cause your brain's memory to crash. Furthermore, if you don't keep past tax systems in your head—such as depreciation calculations, the straight-line method, the declining-balance method, the old straight-line method, and the old declining-balance method—you won't be able to read a client's past tax returns.

Next, the tag team of inheritance tax and gift tax is too strong. Knowledge of the Civil Code—such as estate division agreements, legal reserve of inheritance, special benefits, contribution portions, inheritance by representation, renunciation of inheritance, and qualified acceptance—is a prerequisite. On top of that, landmines are laid out, including basic deductions, spousal tax reductions, special exceptions for small-scale land, tax-free allowances for life insurance proceeds, tax-free allowances for retirement benefits, debt deductions, and funeral expenses.

What is painful for bank employees is the "accountability" in practice. You have to explain penalties to taxpayers, such as filing deadlines, amended returns, requests for correction, additional tax for under-reporting, additional tax for non-filing, heavy additional tax, delinquency tax, and interest tax. If you don't have the knowledge, you'll end up reducing your client's assets, so you have no choice but to be desperate.

In addition, proposals to company executives involve a barrage of technical terms: executive compensation, retirement allowances, company housing systems, business travel expense regulations, welfare expenses, entertainment expense taxation, depreciable assets, fixed asset tax, real estate acquisition tax, business succession tax systems, valuation of unlisted stocks, net asset value method, comparable company analysis method, and dividend discount method. If you try to cover all of these, the textbook becomes thick and the difficulty of past questions is high. It is said that at least 300 hours of study time is required to overcome the 30% pass rate barrier through self-study. It is truly a soul-crushing task.

[Yuki-kun @ Amateur Investor's Thoughts]

Honestly, at first, I wanted to avoid taxes, but once you study them, the way you see the world changes completely! If you understand the mechanism of tax savings, your investment efficiency will skyrocket. Beyond the hell, a heaven awaits where you become a "tax pro" valued by both clients and your company, so let's all do our best together!